Tax Credits

Tax Credits offer extra financial support via the Inland Revenue to help with your everyday costs - they are flexible and change whenever your life changes. There are two types of tax credits - Child Tax Credit and Working Tax Credit, both of which you may be eligible for. Payments are usually made directly to your bank account.

Child Tax Credit is a payment created to support families, or individuals with at least one child or young person who they are responsible for.

Working Tax Credit is additional financial support for workers on a low income and can be claimed even if you do not have any children.

For more information on eligibility and how to claim tax credits, click on the links above or simply give Inland Revenue a ring on 0845 8564312 and they will be happy to answer all your questions.

What are Childcare Vouchers?

Childcare vouchers are a tax efficient way of paying for your childcare regardless of the age of your child.

How do Childcare Vouchers work?

Your employer pays a childcare voucher company an agreed set amount of your salary, who turn pass this to the Nursery. There can be no cash refund. Any unused Childcare Voucher monies paid to the Nursery must be refunded back to the Childcare Voucher provider as tax will be liable on any monies returned via your employer to the parent. Childcare Vouchers are seen by employees and employers as a method of receiving part of your salary Tax and National Insurance free. If your employer provides you with childcare vouchers you will not have to pay tax or national insurance contribution’s (NIC’s) on the first £55 per week, or £243* per month. However, if your vouchers are worth more than this, you will have to pay tax and NICs on the remainder.

Employers are not required by law to provide employer-supported childcare to their employees. The decision to do so, and the type of employer-supported childcare provided, is up to your employer. If your employer doesn’t currently offer employer-supported childcare they may find it useful to visit www.hmrc.gov.uk/childcare for more information.

If your employer does not have a preferred Childcare Voucher partner, then we can give you the names of companies to try. We currently accept vouchers from eleven different companies.

* This has been calculated on the basis of 53weeks x £55 divided by 12 months and rounded up to the nearest whole pound.